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Oil exports face shutdown, outgoing official warns

Former Undersecretary of the Ministry of Petroleum Deng Lual Wol- Courtesy

South Sudan’s outgoing undersecretary for petroleum has warned that the country’s vital crude oil exports are at risk of an immediate shutdown due to escalating security threats in neighboring Sudan, through which its export pipeline runs.

In a farewell letter to President Salva Kiir dated Nov. 4, Eng. Deng Lual Wol said Sudanese authorities had formally requested a “safe shutdown” of oil facilities following a series of drone attacks near key energy infrastructure.

Deng was dismissed in a presidential decree issued late on Monday and replaced by Chol Thon Abel.

The warning underscores the vulnerability of landlocked South Sudan’s economy, which depends almost entirely on oil revenue. Oil production had recently stabilized at more than 170,000 barrels per day, according to official figures.

Deng, who served as undersecretary of the Ministry of Petroleum for about a year, said the pipeline running through Sudan remains the only export route for South Sudan’s crude, adding that any prolonged disruption would severely hit government income and the wider economy.

“The security situation in Sudan is a serious concern for our crude oil exports. The recent drone attacks near important oil facilities, and the communication we received from Sudanese authorities asking us to prepare for safe shutdowns, present a critical challenge that needs to be handled very carefully and with close coordination,” he said.

He said the oil sector had been preparing to open new concessions and boost output before the latest crisis emerged.

It is the first time a senior South Sudanese official has publicly confirmed that Sudan requested a shutdown of the shared export infrastructure.

In an official letter dated Oct. 24 and seen by Radio Tamazuj, Sudan’s Ministry of Energy and Petroleum instructed operators to begin a “safe shutdown” of oil processing and transportation systems, citing drone attacks claimed to have been carried out by the Rapid Support Forces (RSF).

The letter, signed by Sudan’s Undersecretary of Energy Dr. Mohieldien Naiem Mohamed Saied and addressed to Deng, reported that drones targeted the Heglig oilfield and diesel storage depots, describing the assault as part of a “systematic targeting of energy infrastructure” across Sudan.

“The operational reality dictated by these attacks now dictates that a shutdown is the appropriate course of action,” the letter said, citing threats to personnel, fuel shortages caused by damaged tanks, and the need to safeguard remaining infrastructure.

The shutdown affects the PETCO and BAPCO transportation systems and two central processing facilities essential for moving South Sudanese crude to international markets. Sudan’s ministry instructed operators to coordinate the shutdown with their South Sudanese counterparts.

The letter accused the RSF of seeking to “spread the war and suffering to the entire region.”

Fighting between the Sudanese Armed Forces (SAF) and the RSF erupted in April 2023 and has since devastated Sudan’s economy and disrupted cross-border trade, including South Sudan’s oil lifeline.